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WASHINGTON – Ripple Labs, a leading player in the field of cryptocurrencies, could face lesser penalties as part of its legal battle with the Securities and Exchange Commission (SEC), the authority American financial market regulator. John Deaton, a legal advocate for the crypto community, plans to submit an amicus curiae brief to support Coinbase (NASDAQ:) in its separate legal skirmish. The move is part of a broader movement against what some see as unclear SEC regulations surrounding cryptocurrencies.
Mr. Deaton, who has closely followed the Ripple case, anticipates a major decision for early 2024. He believes Ripple’s non-fraudulent institutional transactions of XRP could warrant a reduction in penalties. The company is currently facing a $770 million drain, but thanks to Deaton’s advocacy, that amount could decline.
The SEC’s approach to regulating cryptocurrencies has been under intense scrutiny since June 14, 2023. Critics argue that the regulator has failed to provide clear guidelines, leaving companies and token holders in a state of uncertainty. In response to this situation and the January 17, 2024 hearing for Coinbase, Deaton is preparing to intervene. If Coinbase’s motion to dismiss is denied, it plans to file an amicus curiae brief to defend the rights of token holders.
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